A new Build To Rent scheme in London has received lavish praise from a local council.
Railpen, the investment manager for the Railways Pension Scheme, has entered into a £92m funding deal with property firms Revenue + Capital and Fifth Capital to develop 198 BTR apartments in Barking.
Railpen has acquired the land from Revenue + Capital with a 50-year lease to be granted to the Barking & Dagenham council upon practical completion in 2025.
Some 35 per cent of the flats will be deemed affordable.
There will also be green lease clauses, obligating the tenant to maintain sustainable responsibilities throughout the operation and occupation of the development.
Julian Allport, Investment Manager at Railpen, says: “We are pleased to have agreed this deal with Fifth Capital for the development of Trocoll House. The BTR sector has been resilient throughout the pandemic, delivering strong investment returns. We look forward to being a long-term partner of Barking & Dagenham Council.”
And Darren Rodwell, Leader of Barking & Dagenham Council, adds: “The investment being made by Railpen is hugely welcomed. The proposals will deliver new, secure and affordable housing stock for the borough and help regenerate Barking town centre. Barking & Dagenham is leading the way in London on building new housing stock and we look forward to working with Railpen in the future.”
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Housing ? or boxes in the sky.
The whole deal looks very incestuous I must say. All clapping each other on their backs, and no doubt vast sums of cash swilling around. Rents will be high. And as Andrew says, boxes in the sky.
£92million for 198 homes of which 69 will be affordable. That should solve the housing issues in that area - not!
Will the 35% affordable stated be available as affordable when completed or sold back to the Developer. This has happened in other Borough’s but admittedly were not R2R.
Council lavishing praise on this rent 2 rent Developer with £93m pension fund of course they were stuck and no where to put thy money only muscle in on private Landlords that has been providing this accommodation for decades. They talk a great deal about Discrimination I don’t see the Council’s giving us any praise for all we have done in the past.
I think they are missing a trick here to there will be no Stamp Duty Land Tax here as no sale. How much revenue is this lost, as sold property to let attracts to higher rate of SD, for example on a Flat or House sold for letting on a £500k property purchase commands SDLT tax of £30k so work out this loss on £93 million.
What does 'affordable' mean? Cheaper quality. Bought by council to rent cheaply. Housing association? I don't understand how you can make renting cheaper.
I've often wondered what ''affordable'' means, affordable by those on benefits, those on minimum wage, those on £30k a year, affordable by who exactly ?
I believe Housing Associations rent at about 80% of market rent & this is considered affordable.
Well if a couple are a working family it might not be affordable for them , having to pay for everything, get No Children's allowance, pay for nursery fees, School Uniforms, full Council Tax and a range of other services with no discount.
On the other hand they might be on benefits with a Housing Association where the Association is exempt from many rules & costs. They might be with the Council’s where no HMO license is required or income tax to pay as I understand it, that worth 20% so they are not cheaper at all.
Plus those Tenants will have a range of discounts, subsidies, school meals even when not at school. So again is it the type of Tenants is deciding factor as to whether a property it’s affordable or not.
Tricia, so £92m divided by 198 units = £464k costs each, that’s very high cost I would like to be tho Developers, you can buy a house in Dagenham for that or 2 Flats.
Like I said above, all too cosy and a lot of cash swilling around. It would be interesting to understand how much of that is contained in brown paper bags!
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